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TYPE
Artículo
TITLE
The Mexican Oil Boom: 1977-1985
AUTHOR
Gavin, Michael.
CONTRIBUTOR
INSTITUTION
Banco Interamericano de Desarrollo (BID)
DATE
1996-01-01
COUNTRY
México
SUBJECT
Investimento. Investment. Inversión. Setor Privado. Private Sector. Sector privado. Setor Público. Public Sector. Sector público. Crises Financeiras e Estabilização Econômica. Financial Crises & Economic Stabilization. Crisis financieras y estabilización económica. Petroleum, Coal & Natural Gas. Petróleo, carbón y gas natural. Desenvolvimento e Crescimento Econômicos. Economic Development & Growth. Desarrollo y crecimiento económicos. world oil price. oil industry. WP-314.
DESCRIPTION
The Mexican oil boom was characterized by a period of high investment, followed by capital flight. The private sector and households responded to the 1977-1981 windfall by attaining high savings rates. On the other hand, the Mexican government, the proprietor of the state oil company and the principal beneficiary of the oil boom, used windfall revenues to finance unsustainable spending and even engage in dissaving. These policies produced macroeconomic dislocations that made Mexico highly vulnerable to the inevitable external shocks..